I WISH to air my concerns about the controversial African Union
which willbe launched soon in South Africa. I agree with the newly-elected
Presidentof Madagascar, Ravalomanana when he labelled the OAU as a group of
Africandictators when they would not endorse him as the new president after
winningthe elections in that country.

This same issue happened to
Zimbabwe when they quickly came to the rescue ofthe beleagured Mugabe who
self-endorsed himself President of Zimbabwe afterloosing to the young
dynamic Morgan Tsvangirai. These leaders cannot takeAfrica to the new
challenges of the new millennium. They fear change andthey do not respect
human rights for their own citizens.

Right now, they are dining with the
world's most toxic leaders and I meanRobert Mugabe, Daniel arap Moi and
Muammar Gaddaffi of Libya.

What can Libya teach us about democracy
when, in fact, there has never beenelections in that country? The country
has never experienced oppositionpolitics since they are suppressed by the
present regime. Moi is stillwarbling on whether to retire or extend his
authoritarian hand. Mugabe evenrigged elections in the eyes of his own son,
Chatunga He portrays himself asa revolutionary, but as I know, a
revolutionary does not kill his ownpeople, make them starve and suffer like
what we are seeing in Zimbabwe.It's embarrassing for South Africa to host
him.

I foresee the African Union being used by Gaddaffi as a platform
to end theLibyan sanctions and to fight the West in the sense of
imperialists.

Africa now needs new blood, non- racist technocrats who
can take us to thechallenges of the globalised world. Leaders who think of
their people firstrather than the present who think of killing, buying
Mercedes-Benz cars,stealing from public coffers, and are scared of fingering
members withintheir club who rig elections. If the African Union kick-starts
with thelikes of Gaddaffi and Mugabe, forget about it, it's bound to
fail.

ZIMBABWE is stagnating, its people yearning for help. But
instead ofsolutions we are confronted by slogans and snake oil masquerading
as policy.

When the head of state publicly describes his own
policy-makers as saboteursand declares the policy of his Finance minister
"dead", the last glimmer ofhope for a rational fiscal regime - and with it
economic recovery - istorpedoed.

President Mugabe's statement, in his
address to parliament on Tuesday, thatdevaluation of the dollar will not be
tolerated is of course unlikely to behis last word on the matter. The sheer
force of economic logic will obligehim to reconsider - probably sooner
rather than later. But judging by thechorus of support from Zanu PF MPs for
Mugabe's hard-line stance, theostriches are currently in charge of
policy.

And it is an entirely delusional policy. As Tony Hawkins points
out in ourPage 5 story today, devaluation, far from being dead, is alive and
well.

With most of the economy governed by the parallel rate -
includinggovernment business - devaluation is a daily reality. Those who
pretend thatUS$1 is still worth only $55 are living in their own private
world of partydogma that bears no relation to facts on the ground.
State-owned banks andparastatals would be the first to spell this out for
the president if heasked.

Those who believe in the official exchange
rate would also be entitled tobelieve that GDP grew by more than 80% between
1999 and 2001, making it thefastest expanding economy in the world, The
Economist points out. If nobodyis prepared to indulge in that fiction why
continue to cling to the pretencethat there has been no
devaluation?

But the president's stance on devaluation is only part of a
wider problem ofofficial self-deception. Believing that Zimbabwe's economic
problems stemfrom drought and "British machinations" is at the core of the
problem.

"No one can fairly blame us for the situation of want" that
afflicts therest of the region, Mugabe claimed. But all the organisations
currentlycontributing to relief efforts have placed the blame squarely where
itbelongs - on Mugabe's disastrous land seizures which he pretends are
an"unparalleled success story", even as production plummets and hundreds
ofthousands face starvation.

Mugabe refuses to believe that his own
damaging policies are at the root ofthe national crisis. The sustained
assault on property rights, disdain forthe rule of law, rejection of sound
advice from his own ministers andrepresentative organisations like the CZI
and ZNCC, and abuse ofinternational aid have all combined to sink the
economy.

It is significant that the European Union, in announcing fresh
sanctions onMonday, drew heavily on the malign public pronouncements of
Mugabe's ownministers.

Populist attempts to remedy the situation are
doomed to failure. Agovernment that refuses to respect its own laws and
courts - demonisingjudges according to race or ruling - will deter trade and
investment. It isan illusion to think investors in the Far East don't speak
to investorselsewhere in the world before making decisions about where to
put theirmoney. And the $260 million given to the Zimbabwe Tourism Authority
will bewasted without a return to the rule of law.

Attempts to coerce
banks into giving loans to farmers in the chaoticconditions currently
prevailing on the land are again indicative of thecocoon in which Mugabe's
ministers operate. There is unlikely to be anymoney forthcoming until
stability returns to the agricultural sector.

Meanwhile, the tens of
thousands dispossessed from commercial farms havecontributed to a pattern of
internal displacement that started withpolitical violence in 2000. The
plight of orphans, Aids victims andhouseholds headed by children has been
made immeasurably worse by Mugabe'sarbitrary land seizures. The real face of
his "unparalleled success story"can be seen in homeless rural refugees, food
shortages and downstreamcompany closures.

What emerges most clearly
from Mugabe's address to parliament on Tuesday isa party and government
completely divorced from the catastrophic economicrealities detonating
around them. Mugabe and his inner circle are clearlydetermined to ignore all
sound advice coming from within their own ranks andbeyond, and are instead
resolved to go on compounding past mistakes withpolicies that not only don't
work but are fatally damaging.

That only Mugabe's supporters - most of
them women bused in for theoccasion - were allowed to mount a presence
outside the chamber at Tuesday'sopening ceremony reveals a regime entirely
cut off from the nation which nolonger believes its lies and certainly wants
none of its snake-oil remedies.

THERE has of late been a great deal of
cacophonous criticism of the NewPartnership for Africa's Development (Nepad)
in Zimbabwe by civic groups andindividuals aligned to
government.President Robert Mugabe last week joined in the anti-Nepad
crusade whilevisiting his communist ally, Cuban President Fidel Castro who
seized powerfrom Fulgencio Batista's repressive regime in 1959.Mugabe
said African countries should reject Nepad if it came withconditions - such
as democracy, good governance and human rights - attachedto it.Analysts
said although nothing was surprising about Mugabe's statement givenhis
current paranoia about "British machinations", the remarks revealed
hisdetermination to resist current global economic and political
trends.Mugabe is seen as still caught in an ideological timewarp in which he
isbattling to maintain his rule and impose a warmed up Stalinist
orthodoxylong since discarded elsewhere - except perhaps in Cuba.In
remarks similar to those expressed by Libyan leader Muammar Gaddafiduring
the launch of the African Union in Durban earlier this month, Mugabetold
African ambassadors in Havana in manifest "Fidelista" terms Africashould
spurn conditional aid under Nepad."It's up to us to remain vigilant in any
process of cooperation with them(the West) and reject any tendencies to
subject us to their whims," he said."The main principle is that we as a
united Africa can forge unity withdeveloped countries and get them to fund a
process of transformation."The G8 recently adopted Nepad in Canada on
condition African leaders stoppedbreaking democratic rules.Analysts said
there was nothing colonial about Nepad conditions drawn up byAfrican leaders
themselves. Nepad's peer review mechanism, which is aself-monitoring system
to ensure adherence to democratic practices, demandsAfrica should comply
with internationally accepted standards.Nepad leaders believe the peer
review mechanism would lead to the adoptionof policies and practices that
would lead to political stability andeconomic growth. An independent panel
of eminent persons would beestablished to manage the check-over
system.Gaddafi - whose country has never held elections since he ousted
KingMohammed Idris in a 1969 coup - was at the forefront of a campaign to
derailNepad in Durban.A seasoned populist and demagogue, Gaddafi tried
to whip up nationalistindignation among African leaders by waving the
anti-colonial andanti-imperialist cards."We accept assistance but we
refuse conditions," Gaddafi said. "We are notchildren who need someone to
teach us. We have learnt our lessons. We haveour own culture and they must
respect it."Analysts had predicted this. "Resistance is guaranteed," warned
FrancisKornegay of the Centre for African International Relations at the
Universityof Witwatersrand in Johannesburg, South Africa. "The new order
struggling tobe born represents nothing less than a clear and present danger
to theAfrican status quo of authoritarian governance."By contrast Mbeki,
who came out with his guns blazing against Nepad critics,warned African
leaders against futile populist grandstanding, insistingAfrica has to
change."Our experience of numerous decades makes the clear statement that we
haveto think and work in a new way," he said."We have to overcome the
debilitating effect of inertia, which makes us actin the old ways to which
we are accustomed, to do things as we have alwaysdone them because this is
the way we have always done them."But Mugabe remains in denial. Last week he
repeated his discrepant mantrathat he brought democracy, human rights and
good governance to Zimbabwe."Now they (West) are coming to us as teachers of
democracy when duringcolonialism and imperialism they would not allow us to
exercise our rights,"he said. "It's up to us to remain
vigilant."Apparently Castro also believes the same although he was quick to
jettisonhis democratic pledges soon after coming to power as he imposed
"guerillasocial engineering".There was nothing new about Mugabe's
remarks in Havana. Addressing hisparty's central committee meeting on April
5 after his March disputedre-election, he attacked the West with similar
language and intensity."What Zimbabwe is facing is an integral part of a
global imperial agenda ofrecolonisation heralded by the 'crisis of
governance' thesis of the WorldBank and the wide array of political
conditionalities which accompanied aidregimes in the early and
mid-nineties," he said."It was a recipe for eroding our sovereign rights as
states in order to makeway for new global imperialism packaged in human
rights and democracydiscourse."Opening parliament this week, Mugabe
indulged in his customary claims about"British machinations" and alleged
neo-colonial manoeuvres.Before Mugabe publicly stated his position on Nepad
last week, his followershad already set the tone. Information minister
Jonathan Moyo, who oftenreflects Mugabe's mind, had claimed Nepad was a new
form of imperialism.The government-controlled press had also attacked Nepad
and its promoters."If they (Nepad leaders) willfully fall prey to the
neo-colonial agenda ofTony Blair and George Bush, they will go down in
history as a gullible bunchof politicians who hastened the recolonisation of
Africa," the state-runSunday News said in an editorial on June 23."Can a
serious African politician stand up today and tell us that Westernpowers are
now willing to share the profits of globalisation with thiscontinent? We
should know we have a political tragedy on our hands when someAfrican
governments begin warming to racist oppressors who killed our peopleand
denied us independence just yesterday."The vitriol was directed at Mbeki and
his counterparts."How can we expect imperial plunderers, powerful
capitalists and racistWestern powers to bring us prosperity?" the Sunday
News asked.However, British High Commissioner to Zimbabwe Brian Donnelly, in
hiscontribution to the Britain & Zimbabwe magazine last month, said it
wasencouraging some African leaders were no longer prisoners of the
past."There are many African leaders who have recognised that the world is
movingand adapting to new realities," he said. "They want to seize the
opportunityto build a better future for their people."Donnelly said
rejecting Nepad would keep Zimbabwe handcuffed to the past."Unfortunately,
Zimbabwe has not yet embraced the idealism and optimism ofNepad," he said.
"In Zimbabwe, it has been argued that Nepad is aduplicitous successor to
tied aid, a neo-colonialist tool, or a way ofblackmailing African leaders
into pursuing a Western agenda. But this is theexact opposite of the way
Nepad was conceived, and the way it is beingmanaged and developed by African
leaders. Africa is moving on, but Zimbabweis not."Instead of Zimbabwe
aligning itself to prevailing international patternsfirmly anchored in the
realities of the global economy, Donnelly said: "Wesee language and
attitudes focused on a distorted image of the past."German Foreign minister
Joschka Fisher said in May that remaining in denialwas
unprogressive."The founders of Nepad looked realistically at Africa's
problems andidentified the central reform projects," he said. "They focus on
fightingcorruption and bad governance, enhancing democracy, the rule of law
andhuman rights, eradication of poverty, conflict resolution,
transparentfinancial markets, and more effective promotion of the private
sector. Thisnew thinking, new dynamism will help Africa take its due place
in theinternational community."Robert Rotberg, who directs Harvard
University's programme's on IntrastateConflict and heads the World Peace
Foundation, believes African leadersshould make a fundamental paradigm shift
in both politics and economicaffairs."The attitudes of Africa's leaders
must change," he said. The continent'sleaders, Rotberg said, should monitor
each other."This is a tall order. Neither Presidents Mbeki nor (Nigeria's
Olusegun)Obasanjo have employed peer pressure to halt the growing trend
towarddictatorship in today's Africa," he said."Neither leader has
publicly condemned electoral theft in Zimbabwe orattempts to breach the
constitutions of Malawi, Namibia, or Zambia. Neitherthey nor many of their
contemporaries have criticised denials of mediafreedom in neighbouring
countries, corruption, misappropriation orsquandering of foreign assistance
funds, or said much about the leadershipcauses of the famine now engulfing
13 million people in southern Africa."

LAST week, the Central Statistical Office (CSO)
released the June 2002inflation rate. The year-on-year inflation for June
was reported to be114,5% as compared to 122,5% a month earlier. Since then,
the populace hasbeen speculating as to how the rate of inflation could
possibly havedeclined by eight percentage points when prices are rising
continuously.Numerous journalists have been equally perplexed and have
inundatedZimbabwe's economists to obtain answers to the apparent
conundrum.

Many consumers have expressed great scepticism as to the
validity of thereported inflation rates, suggesting deliberate manipulation
and distortionin order to dupe them into believing that the economy is not
as sick as itactually is. That perception is unjustified. Although
government undoubtedlyand very frequently will misrepresent realities or
will ascribe any negativeeconomic circumstances to causes beyond its
control, or to malevolent actsof its perceived opponents, it is unfounded to
allege that the CSO is aparty thereto. Subject to certain circumstances
hereafter referred to, theinflation rates are reported as accurately as is
reasonably possible.

The widespread disbelief that manifested itself last
week focusedrecollection upon a very excellent press statement from the
director ofCensus and Statistics, published in this newspaper on February
23, 2001,when a similar situation prevailed. In the light of the present
extensiveuncertainty as to how the inflation rate could conceivably have
declinedlast month, it is merited to quote from that informative statement,
whichstated that "it is perfectly normal for inflation to fall even when
pricesare increasing. It is important to emphasise that inflation is not the
levelof, but the rate of change in prices over a time period. In the case
ofyear-on-year inflation the time period is 12 months."

The statement
continues: "The first question that analysts have to askbefore judging the
reasonableness of the reported year-on-year rate ofinflation is: 'Have the
prices in the month increased more or less inpercentage terms than they did
during the same month the year before?'...The year-on-year rate of inflation
is calculated by dividing the CPI for thecurrent month by the CPI for the
same month the previous year. The ratio isthen expressed as a percentage and
the difference between it thus expressedas a percentage and 100 is the rate
of inflation."

Thus, the rate of inflation is calculated according to the
formula: 100 x(consumer price index for relevant month this year, divided by
consumerprice index for equivalent month last year) minus 100. If the CPI
increasedfaster in the relevant month this year than it did in the
equivalent monthlast year, then inflation would have increased. On the other
hand, if itincreased faster in the equivalent month last year than it has in
the samemonth this year, then inflation has decreased.

To illustrate
by way of an example: If an item cost $1 two years ago, andthen 12 months
ago the price was increased by $1 to $2, the inflation ratewas 100%. Then,
if the price was, this month, again increased by $1 to $3,it would be an
increase of $1 on $2 or 50%. So, even though the priceincrease is the same
amount in each instance, in percentage terms theincrease was twice as great
a year ago. The press statement summarised thisby stating: "There will be a
rise in inflation whenever the month-on-monthrate of inflation in the
current month (measuring increases in prices in themonth) is greater than
the month-on-month rate of inflation 12 monthsearlier. It is therefore
important to note that a fall in inflation does notnecessarily mean a fall
in prices in the current month. The fallacy isequivalent to assuming that a
reduction in the acceleration of a motor carnecessarily implies a reduction
in its speed.

"Just as much as the acceleration of a moving car can be
reduced while it isstill increasing its speed, so does inflation fall when
prices are stillrising. Thus, for example, a motorist can start from zero
kilometres perhour and increase the speed of his car to 120 kilometres per
hour in thefirst minute. If in the second minute he increases its speed from
120 to 150kilometres he would have reduced its acceleration by 75% in the
secondminute compared to the first minute. This reduction in acceleration
wouldhave been achieved while still increasing speed."

Yet further
clarification of another key factor in computing the CPI fromwhich the
inflation rate is computed, is provided: "The basket, or weightsused for
combining individual item price indices to form group indices, andgroup
indices to form the all items index, have an influence on the indexand hence
the rate of inflation. In particular, as the economy shrinks inabsolute or
relative per capita income terms, the weight of the food groupis expected to
increase. The increased weight would make the changes in theprices of food
items to have a more pronounced effect on average prices andhence the all
items index and the rate of inflation."

This changing weighting of the
basket is even more relevant today than whenthe statement was issued some 16
months ago, and indirectly is one of thereasons why real inflation is
undeniably greater than the announced rate.With effect from January 2001,
there was a change in the consumer basket andweights utilised by CSO to
determine the CPI, and therefrom the inflationrates, concurrently with an
updating of the CPI base year from 1990 to 1995.Those changes were based
upon the 1995/96 Income, Consumption andExpenditure Survey.

However,
the impacts of the hyperinflationary environment upon most of thepopulace
have been such that unavoidably there has been a marked change inspending
patterns. For most, the best they can hope to achieve at thepresent time is
to fund their accommodation needs, together with requisiteutilities, the
purchase of food, educational needs, health care, andtransport to and from
their places of employment.

They lack the resources necessary for the
purchase of clothing and textiles,furniture and household goods, beverages
and tobacco products, and to engagein recreation and entertainment. Many do
not even have enough income to meetbasic needs. Therefore, the weighting of
the component groups of thespending basket cannot possibly be an accurate
reflection of actualcircumstance. It is very probable that if the basket was
restructured toaccord with present day circumstances, the CPI would be
considerably higher,as would be the rate of inflation.

Over the 12
months of 2001, the CSO conducted a new Income, Consumption andExpenditure
Survey, with a view to updating and adjusting the basket uponwhich CPI is
based. Regrettably, although its findings will enable someminimisation of
the extent of disparity between the basket and the factualcircumstance, it
will not wholly eliminate that disparity, because theintensifying poverty of
ever greater numbers of Zimbabweans, is forcing themto prioritise their
spending more and more to fewer and fewer items and,therefore, the
weightings are changing significantly each month.

As a result, it is not
possible for reported inflation rates to be whollyaccurate. The inaccuracy
is compounded by the fact that most basic,essential commodities are in short
supply, resulting in an active blackmarket purveying most of the limited
availability of those commodities, atgreatly inflated prices. But the CSO
must necessarily use the pricesprescribed by Zimbabwe's draconian and
foolhardy price control legislation(which is a very direct contributor to
many of the shortages, as producerscannot afford to produce at a loss!). The
CSO has no ready access to thevolatile, unlawful prices prevailing in the
black market, and yet it isthose prices which should more realistically
determine the rate ofinflation.

A further factor of the marginal drop
in inflation in June is that CSOcollects data in the first half of the
month, whereas in June severalsignificant price increases occurred in the
second half of that month,including a 35% increase in commuter bus fares,
substantial increases in theprices of various beverages and foodstuffs, and
of other commodities andservices. Those increases will reflect in the July
inflation rate, as willmany other increases which become effective early in
July.

Banks rebuff MadeVincent KahiyaBANKS will not
release funds to newly-resettled farmers until government canproduce
collateral against loans or first-class guarantees that money loanedwill be
repaid.

Bank executives this week shot down claims by Agriculture
minister JosephMade that financial institutions had agreed to fund this
season's crop,planting of which commences in October.

Bankers
said they wanted the government to explain the issue of collateralfirst
before committing themselves. Leases were not an acceptable form ofsecurity,
they said.

The banking sector has been asked to raise at least $76
billion to financethis season's crop, which should be produced mainly by
newly-resettledfarmers. The money is needed for tillage and the purchase of
agriculturalinputs including fertiliser and seeds.

Made, who
together with members of the Cabinet Action Committee on LandReform and
Resettlement met with bankers this week, said leases would beused as
collateral.

"The government will increase the issuing of lease
agreements so that thenew farmers move in in time for the cropping season,"
Made was quoted assaying in the state media. "They will also use the leases
as collateral.

We told the bankers that we are speeding up the processing
of leases."

Government has been issuing newly-resettled farmers with
99-year leases.

But an economist with a commercial bank said
financial institutions wouldnot entertain lease agreements as
collateral.

"If a new farmer leasing a property fails to repay a loan
what can the bankdo?" he asked.

"The bank cannot auction the farm
because it is state land and the newfarmer does not have any assets to talk
about. Banks do not own any money.They use investors' money and therefore
cannot risk this investment withoutany reasonable security," said the
economist.

"Banks want to know the nature of guarantees the
government can come up within such a situation," he said.

A
banker said with less than three months to go before the onset of therains,
it was not practicable for the banks to issue loans to thousands offarmers
under the A2 scheme.

He said the government had not even completed
the paperwork required toenable farmers to apply for loans.

"The
only workable plan is for banks to lend money to government foron-lending to
the farmers," said the banker. "Commercial banks do not havethe capacity to
administer thousands of loans for all these new farmers inthe little time
left before the rains."

Zimbabwe's rainy season usually starts in
earnest in November.

Apart from the issue of collateral, bankers this
week said they also wantedto see a proper audit of the resettlement
programme to ascertain realisticproduction levels, especially in the A2
resettlement sector. The auditshould give a clearer picture of how many
farmers had actually taken uptheir new pieces of land and were preparing to
plant a crop this season.

The government's crop forecasts in the last
two years have been way off themark as reset-tled farmers produced a much
smaller crop than officials hadpredicted.

Made said the banking
sector this week tentatively agreed to match an $8,5billion government fund
for the purchase of inputs such as fertiliser, seedmaize, sorghum and millet
as well as tillage.

The fund is only 11% of what the new farmers need
to finance this season'scropping.

$1 in 1990 now worth two centsGodfrey
MarawanyikaINFLATION has eroded the value of the Zimbabwe dollar to a paltry
two centsin just over a decade, the Zimbabwe Congress of Trade Unions (ZCTU)
hassaid.

The union's collective bargaining position in the current
wage negotiationsis based on this sharp fall of the dollar. ZCTU chief
economist GodfreyKanyenze said even the purchasing power of the dollar had
declined.

"The value of the dollar in 1990 has been eroded to just
two cents as of May2002, implying what two cents could buy in 1990 is what
$1 buys at May 2002prices," said Kanyenze. "This raises important policy
questions regardingthe effectiveness of raising minimum wages without
stabilising the economyby, among other things, reining-in on
inflation."

Employer representatives and the labour body have been
meeting for the pasttwo months in the collective bargaining process, which
has seen some workersbeing awarded between 60% and 70% salary
increments.

Basic salaries for many workers have been eroded by the
high cost of livingwhich has been exacerbated by the rising inflation rate
currently at 114,5%.The shortages of basic commodities, which can now only
be sourced on theblack market, has worsened the
situation.

Kanyeze said wage negotiations should be based on posting
workers earningsabove the poverty datum line to achieve a more equitable
wage structure."The gap between the highest and lowest paid remains obscene
in theeconomy," he said.

According to the United Nations
Development Programme, Zimbabwe is anunequal society where 20% of the
population account for 60% of its incomeand close to 30% of the incomes go
to the middle 40%, while only 10% goes tothe poorest 40%.

The
report said the average incomes of the richest 20% were 12 times thoseof the
poor and four times those of the middle-income group. Kanyenze saidthe
tendency over the years had been for negotiations to focus only
onwages.

"Under condition of high inflation, all that may be
realised from collectivebargaining can easily be eroded. As such it is
necessary to include non-wageissues in negotiations," he said. "It is
necessary to look at the workinghours with a view to reducing them in line
with international trends.

Other non-pay allowances can also be
negotiated depending on the sector."

Since the collective bargaining
process began two months ago, differentsectors of the economy have agreed on
varied salary adjustments because ofnumerous external factors that impact on
them.

$1 000 note comingGodfrey MarawanyikaTHE Reserve
Bank will introduce a $1 000 note early next year as the current$500 note -
the highest denomination - has seen its value heavily eroded inless than 12
months, the Zimbabwe Independent has been told.

The central bank designed
the new note at the same time as the $500 billlast year but was reluctant to
launch it. The $500 note came intocirculation last August.

The
new note would maintain the country's usual natural features on
oneside.

The $500 note was introduced after the then highest
denomination of $100 hadbeen eroded by rising inflation.

The
introduction of the new note comes against a backdrop of highmoney-supply
growth that is currently at 113%, just below inflation.

Last year the
central bank opened a new minting plant in Bulawayo where theprinting of the
$500 note is taking place.

Zanu PF militia enlisted for censusBlessing
ZuluGRADUATES from the notorious Border Gezi Training Institute have
beenrecruited as census enumerators by the Central Statistical Office
amidallegations that the ruling Zanu PF party has hijacked the
exercise.

Militias based at the camp were used as part of Zanu PF's
brutal campaign inthe run-up to the presidential election in
March.

There are fears that the census results will be doctored so as
to distortfigures in areas such as Uzumba Maramba Pfungwe (UMP) and
Chitungwiza wherePresident Mugabe won on the back of thousands of suspected
ghost voters inthe March 9/11 poll.

"The census is being
supervised by politicians picked from various districtsinstead of qualified
and experienced statisticians and officers at thedepartment's head office
and provincial offices," said a CSO source.

Washington Mapeta, the
census manager said he was not aware of the claims.

"I am not aware
of any members from the Border Gezi Training Institute whohave been
recruited," said Mapeta.

"We are a professional body and the people
we recruit are also professionalsand we specify the qualifications we
want."

The CSO is flying two officers to Bulawayo to pay field
workers deployedthroughout the region.

The source said the delays
in issuing people with T-shirts and identitycards had resulted in problems
for those involved in the field preparationamid allegations that there was
corruption in the tender system.

"I cannot be accused of corruption
because I am not part of the tendercommittee. I only specify what we want
and it's up to the Government TenderBoard to decide," said
Mapeta.

On possible cover-ups of numbers, he said: "If the
authorities in aparticular area can prove that the figures are not correct
and convince uswe can do a recount with them, but this is highly
unlikely."

Morale among enumerators is reportedly low as they are
being paid verylittle for the exercise. CSO officials deployed in the urban
areas are notpaid and those in the rural areas are getting only $150 as a
fieldallowance.

Field mappers are being paid $300 a month. The small
allowances to themappers is said to have delayed the production of census
maps which weresupposed to have been finished by December 2001

MDC plans another bid for voters rollDumisani
MuleyaTHE opposition Movement for Democratic Change (MDC) will make another
courtbid to get a copy of the national voters roll used in the March
9/11presidential election in compact disc format.

MDC
secretary-general Welsh-man Ncube yesterday said his party is battlingto
overcome hurdles in its court challenge against President Robert
Mugabe'sdisputed re-election.

"Our lawyers are still finalising
papers on how we can make another attemptto get the electronic version of
the voters roll," Ncube said. "We have twooptions, either to make another
application to the High Court under theAccess to Information and Protection
of Privacy Act or appeal to the SupremeCourt."

High Court judge
Anne-Marie Gowora, in a judgement delivered by JusticeSusan Mavangira on her
behalf on July 10, ruled the MDC was not entitled tothe voters roll in
electronic form.

Ncube said the MDC - whose leader Morgan Tsvangirai
rejected Mugabe'svictory as "daylight robbery" - would make another effort
to get the compactdisc version because the print form was cumbersome and
difficult to audit.

"The High Court said we are entitled to the
voters roll but not in anelectronic version," he said. "It said we are
entitled to a print versionupon payment of a prescribed fee, which is about
$1,2 million. We can onlyget a printed version which is useless because it
could take us 10 years togo through and audit it."

Ncube said if
not removed, the voters roll obstacle would undermineTsvangirai's challenge
against Mugabe. "It is part of our case that Mugabecreated fictitious voters
numbering up to about half a million and, for usto prove this, we need a
copy of the voters roll in electronic version toanalyse and show the
irregularities," he said.

The MDC has said Zanu PF used a
supplementary voters roll which containedabout 400 000 illegally registered
voters to rig the poll. Mugabe beatTsvangirai by the same
margin.

Observers said the failure of the registrar-general's office
to release thediscs amounted to a calculated bureaucratic impediment to the
opposition'sdemocratic rights. The MDC said there were systematic hindrances
in its way.On March 8 - a day before the poll - Chief Justice Godfrey
Chidyausikureserved judgement on Tsvangirai's application on a range of
electoralissues which could have changed the outcome if a ruling had been
made on thekey matters before the court.

Hardest hit are those farmers who are part of the
$450-million Biri Damproject in Banket who have come under intense pressure
from the ZFTU.

ZFTU officials are reportedly making large claims on
farmers - ostensibly asretrenchment packages for farm labourers who have
been affected by thechaotic land reform programme.

"Some farmers
are being ordered to pay as much as $30 million to theirlabourers as
retrenchment packages," said one farmer. "How are farmers -some of whom were
not able to harvest their crop - able to raise suchunrealistic amounts?"
queried the farmer.

ZFTU president Alfred Makwarimba confirmed to the
Independent that hisorganisation was involved in "solving labour" disputes
on the farms.

"We are aware that some farmers who have been given
Section 5 and 8 orderswant to leave the country without paying retrenchment
packages to theirlabourers," said Makwarimba. "We want to make sure that
they pay and we havebeen successful in many cases, notably Centenary,
Raffingora and Rushinga.

"Some farmers are just being stubborn and
they are refusing to co-operatearguing that they need to be paid their
compensation first. The governmentwe know already has money ready and they
should go and collect it.

Those who are genuinely poor can pay half the
amount and pay the restlater."

ZFTU interference with operations
on the farms has also cost the nationmillions of dollars as farm workers
were forced to down tools resulting insome farmers failing to harvest their
crops.

Jenni Williams, spokesperson for Justice for Agriculture, said
the ZFTU doesnot have a mandate to negotiate on behalf of the farm
labourers.

"The ZFTU does not employ those people and does not have the
right torepresent them," said Williams. "We are well aware that they are
taking 25%to 30% of the amount they are extorting and we call upon the
police toarrest them."

Last year the ZFTU went around factories
demanding the rehiring of suspendedworkers and protection money from
employers.

Police spokesperson Wayne Bvudzijena said the police had
not received anyreports of extortion. "We have not received any reports of
extortion and weurge all those farmers facing problems to report to the
police," he said.

Parastatals owe a total US$350mStanley
JamesCORRUPTION and mismanagement have resulted in Zimbabwe's
parastatalsaccounting for more than US$350 million of the country's US$9,5
billiondebt, the Zimbabwe Coalition on Debt and Development (ZCDD)'s latest
reportsays.

The report, released this week, showed that as of June
the country's US$9,5billion debt comprised US$4,5 billion foreign, US$900
million in arrears,and a domestic debt of $280 billion.

"Despite
various interventions by government over 1996/1997, the country'smajor seven
public enterprises excluding the Zimbabwe Electricity SupplyAuthority (Zesa)
suffered operating losses of over $3 billion, half of thisbeing accounted
for by Noczim which registered an overall loss of $174million, 105% off its
target of $32 million," the report says.

"As a result of the 1997/98
financial crisis which saw the Zimbabwe dollarslide more than 30 percentage
points against the US dollar (on the officialmarket), Zesa's loan portfolio
trebled from $4 billion to $12 billion,showing a 50% increase as a result of
currency depreciation alone. Thepublic debt soared from $60 billion to over
$550 billion within six years in2002."

ZCDD economist John
Manyanya said rampant corruption and mismanagement hadresulted in the
state-owned companies continuing to incur massive losses.

"Despite
the costly restructuring, there is still rampant corruption andmismanagement
in public enterprises. The various reforms of publicenterprises have failed
to infuse professional norms of corporate governancepremised on principles
of transparency and organisational or managementeffectiveness," he
said.

He said the public sector had become the seedbed of corruption.
In theenergy sector mismanagement and corruption largely contributed to
severefuel shortages and huge tariff increases that stoked inflation and
erodedwages over 1999/2001.

Manyanya said government's reluctance
to come up with a transparent systemof accountability continued to pose a
threat to the cashflow positions ofparastatals.

"At the moment
all of the parastatals are operating at huge losses yet thereare no
mechanisms in place to root out financial irregularities. Under
suchcircumstances, the parastatals will keep incurring losses, posing a
threatto the nation," he said.

"Justifiably, deficits caused by
subsidies to the public enterprises wereseen fuelling macro-economic
instability, high inflation, high interestrates, indebtedness and declines
in investment."

ZCTU invites govt for talks on PDLGodfrey
MarawanyikaTHE Zimbabwe Congress of Trade Unions (ZCTU) has approached
government forthe resumption of the Tripartite Negotiating Forum (TNF),
which alsoincludes employers as the third partner.

Talks stalled last
year at the eleventh hour after the three parties failedto sign the Kadoma
Declaration which stressed, among other things, the needfor good
governance.

Business is represented by the Employers Confederation of
Zimbabwe (Emcoz).The agreement was not signed because of a lack of
commitment on the part ofgovernment.

ZCTU president Lovemore
Mato-mbo yesterday confirmed they had invited thegovernment to resume talks
and that an invitation had been sent to theMinister of Labour and Social
Welfare, July Moyo.

"We wrote to government earlier this month
seeking the resumption of theTripartite Negotiating Forum so that we look at
the issue of taxation andthe Poverty Datum Line, (PDL) in line with the
galloping inflation rate,"said Matombo. Currently, the PDL is $25 000 for a
family of six.

"Government has responded saying what is needed was a
holistic approachfounded on the need for a social contract."

None
of the agreements reached by the TNF parties have so far been adheredto due
to lack of political will and constant changing of government'snegotiating
team. The Kadoma Declaration could have paved the way for theadoption of a
social contract that has been on the cards for the past twoyears. Business
sector sources this week said preparatory meetings for theresumption of the
talks were underway.

Ahead of the negotiations, the employers team
has also suffered a setback asthe current president, Kenzias Chibota, will
be stepping down next week andis expected to be replaced by someone with
closer links to the ruling party.

Matombo was sceptical whether
government would respect any agreement."Government representatives on the
TNF have no capacity to take decisions,rendering the whole process futile,"
he said.

In a forthright report submitted to government
last week, ZNCC saidauthorities should now confront the economic crisis
head-on. It saideconomic reforms were urgently required.

"The
country should draw up an economic stabilisation programme so as toaddress
the weak macroeconomic fundamentals," the ZNCC said. "The 2002budget failed
to address these, and hence the challenge rests with thepolicy-makers in the
post-presidential election environment."

The ZNCC said a major
paradigm shift was needed to arrest and reverseeconomic
decline.

"In fact, the country has to map out clearly the economic
paradigm which itis going to pursue," it said. "This will be an important
confidence-buildingmeasure. In this regard, a major economic conference
involving key domesticand international stakeholders, would be an important
platform to draw upsuch an economic strategy."

Authorities should
decide, the chamber said, which institutions wouldimplement key policies. It
said a mechanism to ensure implementing agencieswere not held hostage to
politics was needed.

"It has to be made clear which institution is
going to drive theimplementation of economic reforms," the ZNCC said.
"Zimbabwe is famous forproducing very concise economic policy documents
whose action plans neversee the light of day. We recommend that institutions
that are responsiblefor policy implementation have got to be
action-oriented, otherwise withoutaction no real positive change takes place
on the ground."

On the exchange
rate, the ZNCC said an adjustment in line with inflationdifferentials was
necessary. It also proposed a dual exchange rate - one forofficial
transactions and the other commercial - accompanied by devaluationof the
local currency, which it said is overvalued by more than
180%.

Proposing ways of reducing the 114,5% inflation rate, the ZNCC,
said: "Toreduce inflation, the stimulation of productive activities should
play a keyrole through improving the business operating
environment.

"This would make products available on the shelves and
remove inflationarypressures. Money supply growth should also be curtai-led
in order to reduceits impact in inflation. This implies that government
should reduce itsborrowing, particularly from the Reserve Bank of Zimbabwe,
and tighten moneysupply."

The chamber recommended a re-view of
the current interest rate policy.

"There is need to take a holistic
approach by introducing a total package ofmeasures to deal with the negative
real interest rates that are notconducive for the long-term development of
the country," it said.

The ZNCC said monetary policy should be
tightened to contain money supplygrowth and prevent an inflationary
surge.

"Money supply growth was 100% in March 2002," the chamber
noted.

"Money supply growth should be reduced to 70% by December 2002,
60% by March2003 and levels below 50% by June 2003." It said this could be
achievedthrough curtailing government access to the RBZ's overdraft
facility.Property rights and the rule of law, the ZNCC said, should be
restored whileland reform should be organised and
transparent.

"We recommend that the whole price control initiative be
revisited with theaim of getting rid of the controls to enable businesses to
become viable,"it said.

THE death of Learnmore Jongwe's wife Rutendo has drawn in a
number ofopportunists of all descriptions posturing as marriage counsellors
and humanrights advocates.

Whatever Jongwe's crime might be, why is
he being tried in the media? Whywas the Herald seeking to drag in the
Commonwealth and the European Unioneven before Jongwe had appeared in
court?

It was to be expected of course that Zanu PF and its media machine
would tryto make political capital out of a tragic domestic issue. But it is
thecallous disregard for the aggrieved families that is entirely
unacceptable.Is Rutendo's family supposed to be consoled, for instance, by
JonathanMoyo's claims that Jongwe is the personification of the MDC's
violentnature?

None of this shedding of crocodile tears detracts from
Zanu PF's culture ofviolence which it has bred in every facet of our lives
over recent years. Weare therefore shocked that organisations such as the
Musasa Project can soeasily be lured onto the Zanu PF bandwagon of political
vilification withoutwaiting for the courts to decide Jongwe's fate.Zanu
PF has unleashed its militias in rural and high-density suburbs whohave
tortured and raped poor women without Musasa Project raising a fingerin
their defence. How many victims of political, psychological and
economicviolence, all the products of Zanu PF misrule, have they counselled
sinceFebruary 2000? How many poor farmworkers have they helped since the
mayhemon the farms started? And why have they not been vocal about all
theviolence perpetrated by Zanu PF throughout the country in the name of
landreform and Mugabe's rigged re-election in March?

Amy Tsanga's
remarks are to be expected, even where they disclose details ofprofessional
counselling. But Musasa Project and other women's groups haveshown
incredibly poor judgement in allowing themselves to be used by ZanuPF's
propaganda department.

We hope that the Jongwe and Muusha families will
be respected and allowedtime to reflect on their tragedies without undue
political intrusion. That'swhat "protection of privacy" should be
about.

ZBC had to go out of its way to try and justify Mugabe's trip to
Cuba bycalling on permanent secretary for information and publicity George
Charambafor facts and figures. Well, Zimbabwe was promised 70 doctors,
including 20specialists. Zimbabwe was also promised some anti-retroviral
drugs to fightHIV, said Charamba.

"If these are not demonstrable,
quantifiable, tangible, concrete . results,"said Charamba before he ran out
of adjectives, "then one wonders what is."

What Charamba was not asked
was what has happened to our own doctors andspecialists who are churned out
by our universities at great public expense.Surely there must be something
very wrong with a political system thatforces its citizens to seek economic
refuge all over the world when its ownhealth system is collapsing.

In
any case, isn't it shocking that no business is too small for ourembattled
president to attend so long as it involves boarding a plane."Allies" are
fast getting in short supply the world over. Or was this justanother chance
to find out how Fidel Castro has survived in power since the1959
revolution!

We have commented before on how the Herald's court reports,
onceauthoritative and reliable, have now fallen victim to the propaganda
needsof the regime.

That was apparent last week when Peter
Matambanadzo reported on AndrewMeldrum's acquittal. Deprived of the verdict
the state had been hoping for,the Herald reporter resorted to
invention.

"A bitter Meldrum, beads of tears in his eyes, told reporters
outside themagistrate's court that he had been ordered to leave the
country," we wereinformed. "With his head tilted and his dejection glaring,
he accused thegovernment of muzzling the free press."Meldrum "steered
away" from mentioning the false story he reproduced withoutverifying,
Matambanadzo claimed.

This was itself a bit of a false story. Nobody
apart from Matambanadzo sawthe "beads of tears" in Meldrum's eyes - largely
because there weren't any.And most of the correspondents present remarked on
the absence of anybitterness in his statement.Meldrum didn't comment on
the story in question because the magistrate hadalready done so at length.
He said Meldrum had "acted reasonably like anyother journalist" in trying to
verify the story. But the police had beenunhelpful.

But none of this
prevented IM Mpofu from doing one of his Form II cartoonsshowing Meldrum
blubbing as he hung onto Beatrice Mtetwa's skirt, saying hewasn't going (the
pun "Handiende" was admittedly quite funny) because hewanted to "write about
how dangerous it is to live in this country".

We don't need Handy Andy to
tell us that. The Committee for the Protectionof Journalists has placed
Zimbabwe among the 10 most dangerous places forjournalists to work. That
includes several lawless ex-Soviet republics,Colombia, the West Bank,
Afghanistan, Burma, and Iran. The terrible ordealsuffered by Joe Winter when
state agents threatened the safety of his wifeand baby the night before they
left the country last year is a matter ofpublic record.

Mpofu should
understand that working as a government public relationsofficer is a
relatively comfortable job compared to real journalism.

We were
interested to see an SABC news clip on Sunday night, ahead of
EUdeliberations on further sanctions against Zimbabwe on Monday. Their
camerafocused on the Supreme Court building.

Was this a hint of where
the net may next be cast, we wonder? Does SABC knowsomething we don't? In
the same clip, Olivia Muchena was shown addressing ademo by Zanu PF
supporters outside the British High Commission. But heranti-British
sentiment can't be too pronounced. She was in Britain on aprivate visit only
recently. The last for a while, we gather.

Stan Mudenge was boasting last
month of how President Mugabe hadsuccessfully dodged the sanctions ban on
travel to the EU and US. Theexamples of the UN and Rome visits were given.
These are however governed byinternational treaties.

Mudenge should
instead be asked to comment on the president's recent transitstop in Madrid
en route to Cuba. Is it true that Mugabe and his entouragewere denied visas
to leave Madrid airport and check into a hotel as theyawaited their
connection to Havana? And while Grace was able to travel to aUN meeting in
Geneva last week, we gather her husband had to cool his heelsagain at Madrid
airport on Saturday while awaiting his flight back toHarare.

Perhaps
the Foreign minister may like to comment. Or Willard Chiwewe whosemaladroit
response to the latest EU sanctions in Tuesday's Herald showed whypermanent
secretaries are viewed as nothing more than Zanu PF functionaries.

It is
being widely remarked in Harare how the imposition of the daily partydogma
has led some otherwise sensible ministers to say the most ridiculousthings
in order to conform with the president's firebrand response tointernational
pressure.

Last week poor old John Nkomo was obliged to state that
Guardiancorrespondent Andy Meldrum was a security risk. This was in order to
justifyan arbitrary order to deport the veteran correspondent.

Then,
on the prospect of intensified sanctions, Nkomo told the World Todaythat
political violence was not increasing in Zimbabwe.

"As a sovereign state
we must be allowed to govern ourselves," he said."There are human rights in
Zimbabwe - we are going through a period oftransition from when there were
no human rights for black people inZimbabwe."

He added: "We do not
need to go shopping in Europe. Zimbabwe has many shopsand people can go
shopping in Zimbabwe. What is Europe anyway? There areother parts of the
world."

How sad to see ministers reduced to this. It's as if they have
all had afrontal lobotomy with Jonathan Moyo as the surgeon.

Patrick
Chinamasa is of course the most obvious victim of invasive brainsurgery but
there are others such as Joseph Made who apparently didn't needvery much
doing.In this connection, we liked the report on Mugabe visiting the Centre
forGenetic Engineering in Cuba. Clearly the old chip has been giving
himtrouble and needed replacing. The hair dye was probably leaking into
it.Only Cuba and China still offer this kind of repair-job we
hear.

We feel a little sorry for state lawyers who are instructed to
repeat incourt the state's case about foreign correspondents being a
security risk.When pressed to show what they have at an "in camera" hearing
where securitywon't be compromised, they have to decline the offer because
they don'tactually have any instructions as to what they are supposed to
produce. Nordoes anybody else of course.

Things don't seem to be
going so well for news agencies either in the newera. On a visit last week
Agence France Presse's director Denis Hiault wasgiven a 5pm appointment with
Information minister Jonathan Moyo. That gavehim three hours to relax,
shower and change after his arrival. But then acall came through: the
minister wanted him to be there at three.

This meant a quick change at
the office and straight to MunhumutapaBuilding. There the visiting director
was surprised to see televisioncameras. Ushered into the minister's office
he was presented with the recentreport of the Media Ethics Committee which
should help if he suffers frominsomnia on the flight home. In return he
handed over a glossy collection ofAFP pictures taken last year, The World in
Photographs.

But despite the smiles and handshakes captured by ZTV and
the Herald, theminister's message was less welcoming we hear. No more
foreigners will belet in to work for AFP when the present incumbents'
permits are up laterthis year. This almost certainly means Harare will be
downgraded as aregional bureau. Meanwhile, we hope the minister didn't look
too closely atthe AFP pix. A few may have had difficulty passing Zimbabwe's
Censorship Actwe are told.

Indeed, possession of such material could
be an offence!

The Reserve Bank of Zimbabwe this week came up with a
strong rebuttal togovernment's head-in-the-sand claims about the
black-market trade in foreigncurrency. There have been fatuous threats by
the government that it might beforced to close down all foreign currency
accounts and bureaux de change toease shortages. According to the RBZ, this
amounts to dealing only with thesymptoms of an underlying "fundamental
problem".

"Simply put," said the RBZ in response to questions by the
Herald, "the realissue is Zimbabwe's inability to export more and earn more
foreignexchange . A sustainable solution is to put in place measures that
ensureexporter viability and the generation of more foreign currency
.Growingexports can only be guaranteed by creating a stable
macro-economicenvironment characterised by low inflation."

This is
exactly what everybody has been telling the government. If anybodyhas
sabotaged the economy and made life unbearable for the public, it
isgovernment whose political imperatives seem to dictate that the
productiveformal sector of the economy must be superseded by the informal
sector. Aslong as politicians and economists pull in different directions
Zimbabwewill remain stuck in the morass for a long time to come. Trips to
Havana, nomatter how many our leaders make per year, won't generate enough
foreigncurrency for the country. And as long as foreign currency is in short
supplypeople will continue to beat the system to get it.

In the
Monday Business Herald there was another familiar accusation
againstretailers selling cooking oil and salt in big containers which
consumerscould not afford. The business reporter claimed these commodities
had"become scarce" because consumers can afford only "smaller quantities".
Bysome strange twist of logic, the reporter then claimed the manufacturers
andretailers are "trying to sabotage the government by creating
artificialshortages".

This shows the so-called business reporter has
no inkling about the purposeof business. Companies are in business to make
money and they can only makemoney by charging prices that recover production
costs. This they can't doif government imposes its own prices that defy
business sense.

That much must be evident to even the most dense
observer.

Is Abednico Ncube a closet member of the MDC? We ask because he
played a keyrole this week in persuading the EU to step up sanctions against
Zimbabwe.

In a recent speech he made it clear food aid would not be
available toopposition supporters.

"We do not want people who vote
for colonialists and then come to us whenthey want food," Ncube was quoted
as saying. "You cannot vote for the MDCand expect Zanu PF to help
you."

That statement prompted British Foreign Secretary Jack Straw to
claim theMugabe regime was "willing, literally, to let people starve unless
they votefor a corrupt and bankrupt regime, to keep it in
power".

Well done Abednico. We need more people like you. We have always
maintainedthat whenever Zanu PF seizes a propaganda advantage, just as it
has over theJongwe affair, some fool will come along and score an own
goal.

Zimbabwe/Zambia trade talks stallGodfrey
MarawanyikaLAST week's proposed meeting between Zimbabwe and Zambia to
review the tradeimpasse between the two countries fell through after
officials from Hararearrived 12 hours late, only to find the Zambian
delegation gone.

The meeting was a follow-up to Zambia's ban earlier this
month on allZimbabwean imports.

Despite the Zimbabwean delegation
arriving late, an informal meeting waslater held between Zimbabwe's
permanent secretary in the Ministry ofIndustry and International Trade,
Stewart Comberbach, and Comesa assistantsecretary-general Sindiso
Ngwenya.

Some members of the Zimbabwean delegation only arrived on
Tuesday eveningleading to the cancellation of the meeting. The meeting was
scheduled forMonday morning.

Sources said during the informal
meeting it was agreed that Comesa rules hadnot been followed as the Zambians
had ignored the provisions of the regionalgrouping's safeguard measures
against product dumping.

Sources said Ngwenya made numerous
recommendations including theintroduction of countervailing duties for
subsidised imports.

"The Secretariat also proposed that for the
dispute to be resolved Comesasafeguard measures be applied, which include
countervailing duties forsubsidised imports and influx of imports that the
domestic industry cannotcompete with in cases where dumping has been
established and when there arebalance of payments difficulties," said the
sources.

"Ngwenya also proposed that the enforcement of the CD1
system beingimplemented by Zimbabwe be supported and
expedited."

Some of the companies from Zimbabwe which attended the
meeting includedCairns Foods, Turnall Fibre Cement and BAT, among others,
whilst the Zambiandelegation included the Zambia Farmers Union and Zambia
Association ofManufacturers.

The
Zambian Secretary for Commerce and Industry Mbikusita Lewanika hasmeanwhile
said the ban on Zimbabwean products stood.

Launching the Agricultural
Trade Forum (ATF) on Thursday last week, Lewanikasaid historically Zambia
had been too accommodating in trade at the expenseof its own
economy.

"The ban on 14 Zimbabwean products remains unblocked to
compel mutual tradebetween the two countries," he said. "The ban is a
temporary move to reduceinstitutionalised smuggling."

Lewanika
said at a meeting in Zimbabwe on Wednesday last week hiscounterparts were
unhappy with the unilateral decision effected by theZambian government but
that the delegation from Zambia justified the need toreduce
dumping.

Lewanika said the meeting reached a consensus in which
Zimbabwe agreed toaddress the problem to ensure sustainable trade.

Zanu PF in bid to woo rural votersBlessing
ZuluZANU PF has embarked on a campaign to woo the rural electorate ahead of
theSeptember 28/29 rural district council elections, the Zimbabwe
Independenthas established.

Zanu PF councillors are distributing
taxpayers' money meant for socialwelfare to garner support from rural
voters. Those who are 60 years old andabove are being given money for their
daily upkeep. The programme began justbefore the presidential poll earlier
this year.

The councillors are also distributing funds in the
food-for-work programme.

In Makoni West, the Independent witnessed a
meeting where old people weregiven $1 500 each by a Zanu PF councillor. The
councillor and her team weretravelling in a Makoni District Council vehicle.
The councillor wasaccompanied by an armed member of the Zimbabwe Republic
Police and amunicipal policeman.

During the meeting, those
present were first made to recite Zanu PF slogansbefore getting the money.
The Zanu PF councillor also extolled the virtuesof the ruling
party.

"The party is very much concerned about your welfare and we
should neverallow the enemy to penetrate our ranks," said the
councillor.

The funds though have been drastically reduced. Just
before the presidentialelection in March, the elderly were given the same
amount of money for eachof their dependants as the stakes were much higher
then.

"You are now too many and as such we have seen it fit to give
you $1 500 tocover the whole family but Zanu PF will take care of all your
needs. This isthe party that you nominated and you know what we can do," the
councillorsaid.

"We are also going to ensure that all the rural
areas are electrified sothat your lives will improve."

Payouts
for the food-for-work programme have also been reduced from $1 000per week
to $1 500 for three weeks.

Paul Themba Nyathi, the MDC's local
government spokesman, said he was awareof the latest
developments.

"Zanu PF is simply carrying on from where it left off
after the presidentialelection," said Nyathi.

The rural areas are
being sealed off by war veterans and Zanu PF youths whoare vetting all
strangers. Any suspected MDC supporters are turned back,Nyathi
said.

"We are aware that Zanu PF has cut off all rural areas and the
MDC is notallowed to campaign," he said. "They are afraid people from the
cities willinfluence those in the rural areas and they want to prevent this
fromhappening.

"The next thing that they will do is to monitor
all letters sent to therural areas and this kind of despotism can only be
compared to the Staliniststates. Zimbabwe has now been turned into a police
state," said Nyathi.

The food aid being donated by the international
community has also beenpoliticised, he said.

"There is clear
evidence that MDC members countrywide are being excludedfrom feeding
programmes," he said. "There is further evidence that Zanu PFis seeking to
control feeding programmes countrywide so as to bolster
itssupport."

The MDC called for the de-politicisation of food aid
and welcomed thedecision by multilateral donors to caution
Mugabe.

"Whilst we are gratified that the director of the World Food
Programmewarned Mugabe at the African Union meeting in South Africa that the
WFPwould show zero tolerance if food was used as a political weapon, we
remainconcerned that Mugabe's assurance that this would not happen was too
readilyaccepted," said Nyathi.

Libya under pressure to stop Zim fuel
suppliesBarnabas ThondhlanaGOVERNMENT is negotiating an extension of the
US$360 million Libyan oil dealamid reports that the European Union is
exerting pressure on Libyan leaderMuammar Gaddafi to stop supporting
President Robert Mugabe's repressiveregime.

Government sources last
week said a delegation, comprising Jewel Bank CEOGideon Gono and Mines and
Energy minister Edward Chindori-Chininga, had beento Libya to negotiate the
new deal, expected to be in place in September for12
months.

Libya supplies 70% of Zimbabwe's fuel needs with the
outstanding 30% comingby overland deliveries from South Africa and the
International PetroleumGroup of Kuwait.

It is understood the new
deal will see the Libyans investing ininfrastructure developments and
participating in export barter deals.

Already, fuel outages are being
experienced in the country, with reportsthat outlying areas have run out of
petrol and diesel. In Harare, a numberof service stations were without fuel
last week.

"We might have sporadic shortages here and there, but as far
as the PMAZ isconcerned, the stock levels are stable and there is no cause
for alarm,"Kambarami said.

Fuel industry sources said the new
deal would see Zimbabwe meeting partrepayment of the US$360 million package
in local currency over 90 days, withthe foreign component being paid 30 days
later.

"The new suppliers' and financing agreements are being worked
on now and assoon as the jigsaw puzzle falls in place, the deal will become
effective,"said an industry source. "Although the deal is supposed to become
effectivein September, the period can be reduced if everything is to the
parties'agreement."

The deal could see the Libyans building
hotels and filling stations in thecountry. Outstanding from the current
agreement is the finalisation of theLibyans' interest in the Rainbow Tourism
Group, which is currently 1,4% butis due to rise to 14%. The Libyans are
understood to be in the process ofregistering a local company to oversee
their shareholding in the hotelsector.

John Corrie, the honorary
president of the 92-nationAfrica/Caribbean/Pacific - European Union (EU)
Joint Parliamentary Assembly,last week said the EU parliament would approach
Gaddafi through developedcountries which buy fuel from Libya to exert
pressure on him.

The EU parliament recently passed a resolution to
urge "Libya and otherstates to end material support that reinforces
President Mugabe'sintransigence".

"We are asking all developed
countries which buy fuel from Libya to pressureit to stop trading with
Zimbabwe, otherwise it will risk their orders,"Corrie said.

With
the maverick Libyan leader seeking to become a member of the NewPartnership
for Africa's Development, Libya is likely to find itself moresusceptible to
international diplomacy aimed at finding a solution to theZimbabwe
crisis.

CBZ in US$95m maize dealVincent KahiyaTHE Jewel
Bank (CBZ) has on be-half of the Grain Marketing Board (GMB)secured 500 000
tonnes of white maize worth about US$95 million from SouthAmerica as part of
private sector participation in food importation, theZimbabwe Independent
has established.

Industry sources said the recently concluded deal is the
largest singlegrain purchase by the country since the current crisis set in
and shouldhelp ease the current maize meal shortage.

Major donors
have been pushing the government to allow private-sectorparticipation in
food imports to augment the GMB which was last year granteda monopoly to
trade in maize and wheat.

It has also been established that on Monday
the GMB went to tender for theimportation of 50 000 tonnes of wheat. This is
despite pronouncements byAgriculture minister Joseph Made that there was
enough wheat in the countryand bread shortages were due to hoarding. The
bids should be adjudicated inthe coming week.

The Independent has
it on good authority that the Jewel Bank - which willdirectly pay the
supplier - negotiated the deal on behalf of the GMB whosemaize importation
activities have been constrained by poor logistics andlack of foreign
currency.

The sources said the government, through the GMB, will
repay the loan to theJewel Bank, which has also been instrumental in
securing lines of credit forfuel.

Since the beginning of the year
the GMB has managed to import about 500 000tonnes of maize, mainly from
South Africa, Brazil, China and Kenya.

This has, however, failed to meet
the requisite monthly consumption of 120000 tonnes. A recent United Nations
report said Zimbabwe needs to import 2,2million tonnes of maize to avert
disaster.

This week, the Jewel Bank's investor and public relations
executive SunsleeyChamunorwa was not able to shed light on the huge deal
citing client/bankconfidentiality. "As we have stated before, we cannot, due
to client/bankconfidentiality, disclose to the media all the transactions
that we do onbehalf of the country or our clients," he
said.

Industry sources this week said the first shipments of the
maize through theport of Beira would be in August. The GMB has already
invited roadtransporters to participate in the movement of the grain to
augment the railsystem that is slower and less
efficient.

Meanwhile, imports from Kenya are threatened as the East
African countryearlier this month curtailed exports of maize to insure the
country againstfuture shortages.

It is understood Zimbabwe has
ordered 80 000 tonnes of maize from Kenya, ofwhich 30 000 has already been
delivered while a ship carrying 25 000 tonnesdocked at Beira this week.
Another 25 000 tonnes has not been delivered andit is not clear whether this
would be delivered following the halt inexports.

JOHANNESBURG, 26 July
(IRIN) - The Zimbabwe government's announced increase this week in the producer
price of maize and wheat is too low and does not cover escalating production
costs, farmers' representatives told IRIN.

The price of maize had been
raised to Zim $28,000 per mt (US $509 at the official rate), from Zim $15,000
(US $272) and wheat from Zim $25,000 (US $454) to Zim $40,000 (US $727) per mt.
The government-controlled Grain Marketing Board (GMB) would still sell the maize
at the subsidised price of Zim $9,600 (US $174) per mt and wheat at Zim $29,600
(US $538) per mt.

The minister of lands, agriculture and rural
resettlement, Joseph Made, told the media this was to encourage more farmers to
produce maize as a commercial crop and to ensure adequate supplies. It also
showed the government's commitment to the land reform programme, he said.

"We find it [the increase] unrealistic in the environment of
hyper-inflation that we have at the moment," said Doug Taylor-Freeme, vice
president of commodities for the Commercial Farmers Union.

A more
accurate producer price would be about Zim $60,000 per mt (US $1,090) as it cost
about Zim $43,000 per mt (US $781) to produce the maize, he said.

"We
believe the prices should be set on an export/import parity basis. At the moment
Zimbabwe imports from countries in the region, like South Africa, and we pay a
higher price to South African farmers to import but we should be paying this to
local farmers."

Vanessa McKay of the Zimbabwe Grain Producers Association
said the new price was not likely to be an incentive as costs had increased 122
percent.

"We've just gone through a difficult agricultural season and
large scale farmers need to recover from the losses they made during the dry
period. They have to be able to buy adequate inputs for next season. [The
increase] is not nearly enough to put farmers in a strong position for next
season," she said.

McKay said the current poor prices had already created
a thriving parallel "bucket" market run by small scale farmers.In defiance
of laws banning anyone other than the GMB selling grain, they were selling
buckets of maize in markets for up to Zim $83,000 per mt (US $1,509).

The
government's grain policy, which also prohibits private imports and fixes the
selling price, has been cited as one of the contributors to the country's
chronic grain shortage.

McKay warned that by the end of July the country
would have a total "stock out" of maize. Wheat is already rationed. The World
Food Programme has warned that up to six million people will not have enough
food this year because of the complex food crisis.

AFP - Police in Zimbabwe have
arrested an opposition legislator in thecentre of the country after shots
fired from a convoy of vehicles in whichhe was travelling injured four
people, a newspaper said.

Austin Mupandawana, the Movement for Democratic
Change (MDC) MP for Kadoma,was arrested in politically-charged violence in
the city ahead of mayoralelections due this weekend, the state-run Herald
newspaper reported.

"The suspected MDC members had in the process
allegedly fired three shotsinjuring the victims," police spokesman Wayne
Bvudzijena was quoted assaying.

Mupandawana's arrest came after
police earlier Thursday summoned MDCpresident Morgan Tsvangirai to make a
statement on allegations that he hadthreatened to overthrow President Robert
Mugabe.

Tsvangirai is already facing charges, which he denies, of
plotting toassassinate Mugabe. He is alleged to have made the latest threats
during arally held in May.